U.S. Advances Port Fee Plan Targeting Chinese Vessels

On April 17, 2025, the Office of the United States Trade Representative (USTR) announced updates to its plan to impose fees on Chinese vessels. Unlike the earlier proposal in February, which aimed to charge fees per port call, the revised plan will levy charges per U.S. voyage, reflecting a significant adjustment in implementation.

This initiative is part of the Trump administration's broader effort to revive the U.S. shipbuilding industry and is a response to the Section 301 investigation launched by the Biden administration in March 2024. The investigation was triggered by a petition from five major U.S. labor unions, alleging unfair practices by China in the maritime, logistics, and shipbuilding sectors aimed at dominating global markets.

Following the investigation's launch, the USTR issued a notice of proposed action in February 2025, held two days of public hearings in March, and collected nearly 600 public comments while consulting with federal agencies and USTR advisors. According to procedural requirements, the USTR was obligated to finalize its actions by April 17, 2025.

1) Phase 1 (First 180 days): No fees will be charged.

2) Phase 2 (After 180 days):

Chinese shipowners and operators will be charged $50 per net ton per U.S. voyage, with an annual cap of five charges per vessel. This fee will increase by $30 per net ton each year over the next three years.

3) For non-Chinese operators using China-built vessels, fees will start at $18 per net ton or $120 per container in the first six months, increasing by $5 per net ton annually (or proportionally per container) over the next three years.

Currently, a typical China–U.S. voyage involves transporting an average of 12,000 forty-foot containers and includes stops at four U.S. ports.

In parallel, the USTR is seeking public input on proposed tariffs for ship-to-shore cranes and other cargo handling equipment, in accordance with the "Restoring America's Maritime Dominance" executive order signed by President Trump on April 9, 2025.

A spokesperson for China's Ministry of Commerce reiterated that since March 2024, multiple rounds of communication have taken place regarding the U.S. investigation into China's maritime, logistics, and shipbuilding sectors. China has repeatedly clarified its stance on the Section 301 investigation, submitted non-papers outlining its position, and urged the U.S. to remain rational and objective, rather than shifting blame for domestic industry issues onto China.

"The U.S. is abusing Section 301 for domestic political purposes. These port fees and other proposed restrictions not only fail to revitalize the American shipbuilding industry but will raise shipping costs on U.S.-related routes, increase inflationary pressure, weaken U.S. export competitiveness, and harm U.S. ports, terminal operators, and workers. Many within the U.S. oppose these measures, and numerous countries and organizations have also voiced concerns and dissatisfaction."

"We urge the U.S. to respect facts and multilateral rules and to abandon its erroneous practices. China will closely monitor developments and take all necessary actions to safeguard its legitimate rights and interests."